[HN Gopher] Paddle announces iOS IAP alternative that avoids App...
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       Paddle announces iOS IAP alternative that avoids Apple's 30% fees
        
       Author : pimterry
       Score  : 178 points
       Date   : 2021-10-07 10:00 UTC (13 hours ago)
        
 (HTM) web link (paddle.com)
 (TXT) w3m dump (paddle.com)
        
       | dmitrygr wrote:
       | "Access to customer email "
       | 
       | Hard pass from me. Thanks.
        
       | syspec wrote:
       | Not sure how this would work.
       | 
       | Apple is still entitled to a 30% commission. The commission is
       | the licensing fee for Apple's IP
       | 
       | From the court ruling:
       | 
       | > At step three, Epic Games has identified no suitable less
       | restrictive alternative for Apple's use of IAP based on the
       | current record. The only alternative that Epic Games proposes is
       | that Apple be barred from restricting or deterring in any way
       | "the use of in-app payment processors other than IAP." This
       | proposed alternative is deficient for several reasons:
       | 
       | > First, and most significant, as discussed in the findings of
       | facts, IAP is the method by which Apple collects its licensing
       | fee from developers for the use of Apple's intellectual property.
       | 
       | > Even in the absence of IAP, Apple could still charge a
       | commission on developers. It would simply be more difficult for
       | Apple to collect that commission
       | 
       | > Indeed, while the Court finds no basis for the specific rate
       | chosen by Apple (i.e., the 30% rate) based on the record, the
       | Court still concludes that Apple is entitled to some compensation
       | for use of its intellectual property.
        
       | ericyan wrote:
       | I am also skeptical about their claim for taking care of tax
       | management.
       | 
       | I had contacted Paddle for UK VAT invoice for our Setapp for
       | Teams subscription and their incompetence is phenomenon: first
       | they used an EU VAT number (this is post-Brexit), then they fixed
       | the VAT number but the amounts are in the wrong currency, one of
       | the support agents even get my name wrong once...
       | 
       | Most importantly, I should not even have to ask for a VAT invoice
       | in the first place.
        
         | mikevm wrote:
         | Unfortunately, they're the best alternative to Stripe in
         | countries where Stripe is not supported.
        
       | cr3ative wrote:
       | Rather on-the-nose that the first differentiating point is
       | "access to customer data".
        
         | [deleted]
        
       | bengale wrote:
       | It will be interesting to see how this all plays out. Personally,
       | if you bounce me out of the app to some random payment page I'll
       | close it and delete the app.
        
         | yholio wrote:
         | It's funny you should say that, since it's exactly what Apple
         | feels too. I'm grabbing my popcorn and anxiously wait to see
         | how a 200 employee startup can take the bone away for a world
         | class super-monopoly.
        
       | infinityplus1 wrote:
       | Apple might still collect its 30% by asking for accounting
       | records later.
        
         | towawy wrote:
         | There is way to little talk about this. Apple might still be
         | entitled to the 30% (of gross purchase price paid by the
         | customer) even if the developer is not using the IAP mechanism.
         | The ruling did nothing to invalidate that.
        
           | Aeolun wrote:
           | They're not doing that for existing apps though. It's going
           | to be a bit hard to enforce.
        
           | [deleted]
        
           | Danieru wrote:
           | Apple would be playing with fire if they attempt that
           | interpretation. It would detooth the ruling, and could force
           | the judges hand to impose stricter or more vague
           | requirements. The judge certainly not have an issue with the
           | api design...
        
             | CubsFan1060 wrote:
             | The judge outright said this was ok:
             | 
             | "In such a hypothetical world, developers could potentially
             | avoid the commission while benefitting from Apple's
             | innovation and intellectual property free of charge. The
             | Court presumes that in such circumstances that Apple may
             | rely on imposing and utilizing a contractual right to audit
             | developers annual accounting to ensure compliance with its
             | commissions, among other methods. Of course, any
             | alternatives to IAP (including the foregoing) would
             | seemingly impose both increased monetary and time costs to
             | both Apple and the developers."
        
               | Danieru wrote:
               | Wow, that's insane. She really did give a toothless
               | ruling.
               | 
               | Thanks for correcting me.
        
               | FDSGSG wrote:
               | It's not insane, there's simply no reason for why Apple
               | shouldn't get their cut.
        
               | Aeolun wrote:
               | Microsoft doesn't get a cut from Windows apps. Why should
               | Apple?
        
               | threeseed wrote:
               | Microsoft is definitely the anomaly.
               | 
               | Sony, Microsoft, Nintendo, Google, Valve, Epic etc all
               | take their cut.
        
               | wayneftw wrote:
               | ...and the fact that everybody is doing it makes it good
               | and right, right?
        
               | CubsFan1060 wrote:
               | Why are you comparing iOS to Windows? MacOS to Windows,
               | or iOS to Android make more sense.
               | 
               | A more fair comparison would be andorid. Or the Windows
               | Phone, where Microsoft took 20%:
               | https://en.wikipedia.org/wiki/Windows_Phone
        
               | Aeolun wrote:
               | I'm comparing a small general purpose computer to a big
               | one. How is that an invalid comparison?
               | 
               | Just because everyone does the same thing on a mobile
               | phone doesn't make it any more sensible.
        
               | GeekyBear wrote:
               | Microsoft chose to create Windows as an open platform
               | where they didn't get a cut of application sales.
               | 
               | Microsoft chose to create XBox as a platform where
               | developers who didn't pay them a cut could not sell
               | software.
               | 
               | Microsoft attempted to convert Windows into a platform
               | where developers who didn't pay them a cut could not sell
               | software with Windows RT, but it failed in the
               | marketplace.
        
               | CubsFan1060 wrote:
               | Because it's a cherry picked example that ignores a lot
               | of factors.
               | 
               | I could easily make the statement "Microsoft gets a cut
               | of everything purchased on Xbox, why shouldn't Apple?"
               | 
               | To which I suspect your response would be waving your
               | hands around something that is ill defied (General
               | Purpose Computing), and then trying to define it to fit
               | your narrative.
        
               | roflc0ptic wrote:
               | A more cogent and principled response would be that there
               | is an effective duopoly in the phones market, and this
               | creates incentives for and actually realized anti
               | competitive practices on the part of both google and
               | apple. Apple both builds a market and regulates that
               | market in its own favor, and consumers don't have an
               | especially plausible alternative to participating.
        
               | Danieru wrote:
               | Hey FDSGSG I see you used my comment to implement your
               | reply. As you no doubt know my API usage policy is 30% of
               | your gross.
               | 
               | Note, you cannot deduct the 30% your electric utility
               | charges you, nor the 30% your PC monitor maker charges
               | you, nor the 30% your desk maker charges, you'll have to
               | figure out how to finance your development out of the
               | other -40%.
               | 
               | If this is not acceptable obviously you could have
               | written your reply to my comment under any other comment.
               | There are many other comments you could freely leave your
               | reply to me under. You choose to use my comment to base
               | your reply to no doubt because that's the only one I
               | read. Still of course, I do not have a monopoly on
               | replies to me under all posts on the internet. Replies
               | under my comment are of course not a monopoly because you
               | can freely reply to me anywhere else. For example, you
               | could have replied to my post on your grandma's Facebook.
        
               | worrycue wrote:
               | It's less that it's toothless and more that Apple won the
               | case - she ruled 9/10 counts in Apple's favour.
        
       | soapdog wrote:
       | I see people here talking badly about Paddle highlighting that
       | access to customer data is a feature. I think that many here
       | don't realise that without customer data, they are not your
       | customers. They're Apple customers. If you decide to move away
       | from the App Store, or launch a product elsewhere, you have no
       | way of contacting them.
       | 
       | I'm not in the business of selling apps, but I enjoy writing
       | books. The best way to sell books, is to build a mailing list of
       | fans so that you can reach them when you have another book ready.
       | It is not about reaching people who do not want to receive your
       | comms. It is about having a direct and reliable connection to
       | people who actually want to engage with you.
       | 
       | There is no easy way to do that in the App Store. It is important
       | that people own their own platform, that includes being able to
       | know who your customers are.
       | 
       | I'm not saying to spam people who purchased stuff from you with
       | upsells, that is B.S. and I hate it as much as everyone else. But
       | being able to reach out to them when there is a new version of an
       | app, or something useful to say about whatever they purchased is
       | valuable.
       | 
       | The hardest thing this day is not how to build a great app or how
       | to write a great book. Our main challenge is getting noticed amid
       | all the algorithmic shenanigans. Being blind about who purchase
       | your stuff just adds more friction to that challenge.
        
         | jasode wrote:
         | _> , but I enjoy writing books. The best way to sell books, is
         | to build a mailing list of fans so that you can reach them when
         | you have another book ready. It is not about reaching people
         | who do not want to receive your comms. It is about having a
         | direct and reliable connection to people who actually want to
         | engage with you._
         | 
         | I have a friend who is a voracious reader of Kindle ebooks. She
         | uses Amazon's tools to "follow" certain authors and get
         | notified by any new releases. Yes, she has visited some
         | authors' websites directly and even though they have the
         | aggressive popup for _" sign up for my mailing list"_, she
         | deliberately avoids submitting her email and having a direct
         | relationship with the author.
         | 
         | She'd be one of the buyers that's _" really Amazon's customer"_
         | instead of soapdog's customer. But being shielded from you via
         | Amazon is what she wants. Have you considered that millions of
         | customers think like her?
        
           | soapdog wrote:
           | Let me go on a brief tangent about Amazon. First, they are
           | very hostile to the author. They force the price down on the
           | eBook by leveraging their royalty range. Basically ~75% if
           | the book costs up to ~9.99, if the book is more expensive
           | than that, you get 35%. This means that the author loses
           | money if they price a book higher than 9 bucks but less than
           | 20 bucks (these numbers are not exact, treat them as an
           | impressionist painting, not a botanical drawing).
           | 
           | An author on Amazon has the option of being exclusive to
           | them, which unlocks some perks. Amazon algorithm will push
           | exclusives more often then it pushes non-exclusives.
           | 
           | The reason I mentioning this is because Amazon makes it
           | harder for the author by disguising all its non-competitive
           | practices as them thinking about the reader. It is not, all
           | these are vendor lock-in schemes.
           | 
           | There are many other stores for eBooks. Selling on them
           | prevents you from being exclusive to Amazon, which in turns
           | makes it push your book less often than it pushes those in
           | the exclusive program. Trying to price your book higher makes
           | you lose money.
           | 
           | Your friend has every right not to be forced into contact
           | with an author. That is how it should be. The reason why most
           | authors are trying to get your friend on a mailing list is so
           | that they can have a platform that is not 100% controlled by
           | Amazon algos. It is a hard business being an author, and it
           | is much harder if you have no control whatsoever over your
           | own platform.
           | 
           | I think that they key aspect I want to highlight here is that
           | I don't think your friend or anyone should be put into a
           | mailing list against their will. I hate upsells too. What I'm
           | saying is that all those platforms make it extra hard for you
           | to make sure you can contact the customers who actually want
           | to be in contact with you.
        
         | wokwokwok wrote:
         | The problem here is that you might consider yourself a good
         | actor here; polite, contact your fans only and only rarely with
         | what they would consider valuable notifications.
         | 
         | However.
         | 
         | The world is not full of good actors, because bad actors can
         | make $$$$ by selling your information to third party spam and
         | scammers.
         | 
         | There is no way, currently, to reward good actors, and punish
         | bad actors... and the downside of the bad actors _far_ out
         | weighs the benefit provided by the good actors.
         | 
         | So, while I see your point, the issue here is that in a _wider
         | context_ people are _actively abusing_ that channel, and there
         | no way to stop them without stopping everyone.
         | 
         | So, sympathetic, but the problem here isn't apple, it's the
         | folk who abuse and resale customer data... and I certainly
         | don't have a solution to that; but no one else seems to have
         | one either.
        
         | tomjen3 wrote:
         | > The best way to sell books, is to build a mailing list of
         | fans so that you can reach them when you have another book
         | ready
         | 
         | Feel free to put a link to your mailing list at the end of the
         | book, and I might sign up. Please don't sign me up because I
         | purchase a book from you.
        
         | NhanH wrote:
         | Can't you put in a form in your app, stating "Could you please
         | give us your email so we can contact you when we have a new
         | product?"
         | 
         | Of course, I will never touch that form, and most people won't,
         | but that's not because Apple prevent us.
        
           | cma wrote:
           | The App Store's abusive rules will not not even let you use a
           | collected email opted in to promotions to notify of better
           | pricing:
           | 
           | "Developers cannot use information obtained within the app to
           | target individual users outside of the app to use purchasing
           | methods other than in-app purchase (such as sending an
           | individual user an email about other purchasing methods after
           | that individual signs up for an account within the app)."
           | 
           | You have to flag that user's email in your database as
           | permanently tainted and unable to learn certain truths even
           | if they have long switched to another competitors' device.
        
           | pimterry wrote:
           | Hard to say how their IAP setup will work, but this isn't far
           | from how Paddle works for online checkouts today. They
           | separately track your customers and your 'audience' - the
           | people who tick the 'send me marketing' box during checkout
           | (https://paddle.com/support/what-is-paddle-audience/).
           | 
           | Customer emails are available, but it's explicit that they
           | haven't opted-in for marketing, so if you're subject to GDPR
           | or anything similar (most Paddle vendors, since I think the
           | EU is Paddle's core market) then you can't use the email for
           | anything but necessary account setup & support. Meanwhile
           | audience emails are explicitly fair game for
           | upsells/offers/etc.
        
             | onphonenow wrote:
             | This is what gdpr gets wrong. Tons of popups and
             | notifications you shouldn't use email or cookies for x -
             | but sellers collect them and WILL abuse them - apple u
             | avoid this issue by simply not giving the seller your info
        
         | meepmorp wrote:
         | I see you missing the point here. As a consumer, I don't want
         | to be your customer.
         | 
         | When I buy stuff at the grocery store, I'm not the customer of
         | the companies that produce food. Similarly, I just want to get
         | your app, not become a marketing target for dozens of software
         | vendors with varying privacy and data retention policies. I
         | don't want you to upsell me on anything, it's literally the
         | opposite of friendly to me as a consumer.
        
           | Aeolun wrote:
           | Then why buy something from them at all? I don't want spam as
           | much as the next person, but the people I pay money are least
           | likely to spam me.
        
             | dkonofalski wrote:
             | That's not true at all. Psychologically speaking, you're
             | more likely to spend money with a company that you've
             | already spent money with in the past. It's exactly that
             | sentiment that marketers try to take advantage of.
        
             | prepend wrote:
             | Through the Apple App Store they are not able to spam me.
             | 
             | I don't get any spam from Apple either.
             | 
             | I want to buy things and not be bothered by follow up
             | emails and whatnot.
        
               | [deleted]
        
           | soapdog wrote:
           | That is what I said. It is not about upselling stuff for
           | those who do not want it. It is about making it easier to
           | connect with people who do. This makes sense for some
           | situations but not for others. The grocery shop example you
           | mentioned is great, I agree with you there. People who don't
           | want to be contacted, should not be contacted.
           | 
           | I'm not saying that the way Paddle implemented it is the
           | correct way forward. Personally, I'd rather there was an opt-
           | in option to share data on the payment form. This way, if you
           | want to be in contact with the seller, you can flag it and
           | the default option is not sharing. This is simple and would
           | allow you to remain "not a customer" while letting those who
           | want to be in touch to have an easy path forward. This is not
           | possible inside the App Store.
           | 
           | The App Store model --and Amazon and others as well-- make it
           | really hard for you to find who the customer is. That is not
           | because they're thinking of you. They're doing that as yet
           | another vendor lock-in mechanism to prevent the seller from
           | leaving or doing any kind of business with that customer away
           | from them.
           | 
           | As ~NhanH said in another comment in this thread, you can put
           | a form on an app. Yes, you can jump through a lot of hops,
           | and maybe Apple will allow it through. It is death by a
           | thousand paper cuts. From their PoV it is their customer, not
           | yours. From their PoV, the seller is a customer as well.
        
             | ryandrake wrote:
             | Maybe I'm in the minority, but I don't want to hear a
             | single peep out of a company that manufactures a product I
             | bought. I don't want to be "connected". I don't want to
             | know when their next great thing is available. I don't care
             | what the manufacturer thinks is a really useful, totally
             | non-spam message for me. I don't want that relationship at
             | all.
             | 
             | Maybe others are less dogmatic about it, but I truly
             | appreciate having Apple as a "connection shield" between me
             | and hundreds of thirsty app developers wanting to reach out
             | and tell me all the great things they want to tell me.
        
             | CubsFan1060 wrote:
             | I feel like responsible people (such as yourself) have a
             | hard time seeing that the problem is that the vast majority
             | of people are not responsible and will happily abuse my
             | information.
             | 
             | I don't think Apple is necessarily altruistic here. But I
             | am able to essentially use them to protect me against
             | people who will abuse my information.
             | 
             | And I also think that developers miss the fact that, at
             | least for a lot of us, this model makes it MORE likely that
             | we will purchase your product. I'm much more likely to try
             | a new app out knowing that it's not going to generate a ton
             | of emails or that my credit card information will leak.
        
           | mhh__ wrote:
           | There are more than one grocery stores, but there's only one
           | app store. The point is valid, but I'm not sure if it's the
           | whole story.
        
           | northerdome wrote:
           | I thought this way until I realized I personally value
           | portability over simplicity of signup. Most apps I use often
           | I use on my phone and laptop. When I had an iPhone, I ran
           | most subscriptions through IAP. As soon as I wanted to try
           | Android, moving everything over was nearly impossible.
           | 
           | For most services I now sign up directly through a developer.
           | I also find for services I subscribe to developers provide
           | WAY better customer support than Apple.
        
         | Angostura wrote:
         | >I'm not in the business of selling apps, but I enjoy writing
         | books. The best way to sell books, is to build a mailing list
         | of fans so that you can reach them when you have another book
         | ready.
         | 
         | No thanks. That's what I use book stores (either physical or
         | electronic for)
        
           | nmcfarl wrote:
           | I have a very hard time keeping track of when my favorite
           | authors have released a new book, primarily as I do not trust
           | Amazon/Goodreads. And no one else (electronic) can reliably
           | notify me about this. Heck Kobo, Powell's etc, can't even
           | reliably show books by authors they know I read on their
           | websites.
           | 
           | (Also it's hours in a car to the nearest physical new book
           | store.)
        
         | [deleted]
        
       | endisneigh wrote:
       | Why should Apple or anyone get a percentage? Let me pay at cost
       | plus a fixed fee.
        
         | chrisseaton wrote:
         | > Why should Apple or anyone get a percentage?
         | 
         | Because it's progressive to do so.
        
         | bottled_poe wrote:
         | I think you may be living in the 90s. The global population has
         | decided what their privacy and autonomy is worth. An individual
         | cannot move the needle.
        
         | xuki wrote:
         | Sure, roll your own payment system.
        
         | rahoulb wrote:
         | Why should someone who is making $100 revenue off a transaction
         | pay the same fee as me who's making $1 revenue?
        
           | endisneigh wrote:
           | Because the costs do not scale with the revenue
        
             | mafriese wrote:
             | they do - the first 1m$ only cost 15% - It's btw the same
             | with the Google Play Store
        
               | endisneigh wrote:
               | The fees scale with revenue - what I'm saying is that
               | Apple's own costs do not scale with the revenue they take
               | from companies on the app store.
               | 
               | e.g. A single transaction of $10,000 does not Apple more
               | than $100 other than the beforementioned financial
               | transaction fee.
        
             | rahoulb wrote:
             | How do you know their costs don't scale? Maybe there's
             | insurance or compliance requirements that also apply?
             | 
             | And it begs the question - is "cost-plus" the only valid
             | pricing model?
        
               | endisneigh wrote:
               | Why would their costs scale with revenue? Cost+ certainly
               | isn't the only valid model. Many people are fine with a
               | 30% cut.
        
         | whywhywhywhy wrote:
         | The real question isn't why they deserve 30% lots of people
         | have plenty of arguments about why they believe it's justified
         | because they provide the hardware and dev tools on iOS.
         | 
         | The real question is why I don't have to pay them 30% for
         | software and transactions on my MacBook. Because once you
         | consider that most of those arguments are thrown out.
        
           | dragandj wrote:
           | "Provide" is a bit vague word for "sell". They _sell_ their
           | hardware and force the developers to use their tools.
        
           | mikevm wrote:
           | But you already pay them $99/year for a dev account... why do
           | you have to pay them for every purchase as well?
        
             | leodriesch wrote:
             | $99/y is really nothing compared to the 30% cut when you
             | look at companies like Epic or Supercell.
             | 
             | I'm certain that they could not continue to provide the App
             | Store in its current form without any fee.
        
             | mafriese wrote:
             | Because the 99$/year are for the dev platform and the
             | 15%/30% cut are for using the infrastructure needed for in
             | app purchases.
        
           | rockbruno wrote:
           | I don't mind the 30% at all, I just mind that I'm _forced_ to
           | because they banned the creation of any and all alternatives.
           | The fact that someone would need to build their own phone +
           | OS just to avoid a fee is both hilarious and scary
        
       | seanwilson wrote:
       | I use Paddle for taking payments for a paid Chrome extension
       | (https://www.checkbot.io/) and they've been great with me. The
       | big draw was the "tax management" feature where they take care of
       | EU VAT and other complicated country specific tax regulations,
       | unlike say Stripe and Chargebee. It makes tax returns really
       | straightforward where all you have to process is the 12 monthly
       | payments Paddle send you each year e.g. over the worst case of
       | having to register for VAT in multiple countries and risk making
       | tax mistakes. Their 5% + 0.50 cent fees are high (lower than
       | FastSring though) but there's value in simplifying your admin
       | especially if you're a solo founder.
       | 
       | Related to the comments about Paddle giving you the email
       | addresses of your users: I went with Paddle over integrated
       | Google payments at the time because Google gave you no access to
       | your paid users or their payment methods and I was worried about
       | Google payments shutting down - this turned out to be a great
       | choice when Google deprecated their Chrome payment features with
       | minimal migration options ("There is no way to bulk export your
       | existing user licenses, so you need to have your users help with
       | this part of the migration").
       | 
       | Not predicting Apple would do this but you need to keep your
       | options open where you can so you can keep your customers if the
       | worst happens. 30% fees is crazy in comparison too.
        
         | pimterry wrote:
         | I'm a Paddle vendor too, and they have been good! As a solo EU
         | founder, having to do near zero accountancy is a huge deal that
         | Stripe can't (currently) offer.
         | 
         | That said, I wish they'd improve their API. It's very limited,
         | poorly designed in some places and extraordinarily slow in
         | others. The checkout & tools are good enough that you can
         | ignore it for a long time, but eventually you want to integrate
         | with it and it's a massive pain.
         | 
         | Definitely the worst part of the product, and simultaneously
         | the best thing about Stripe, which does occasionally tempt me
         | to jump ship...
        
           | seanwilson wrote:
           | > It's very limited, poorly designed in some places and
           | extraordinarily slow in others.
           | 
           | Which parts? I do remember the docs being quite sparse when I
           | was doing the initial integration. Most of my support
           | questions about "how do you do X with the API?" were answered
           | quickly but the answer was often "you can't" for a few
           | surprising things (like grabbing a subscription via email
           | lookup but maybe this has changed). Saying that, once I had
           | it set up I haven't had to touch it and haven't had any
           | issues, but my needs aren't that complex. A basic portal to
           | let users check and edit their subscriptions would be nice
           | though instead of everyone having to build this themselves.
        
       | myspy wrote:
       | I'm not sure if that pro Paddle list is good for me as a
       | customer. The access to my data at least isn't.
        
       | [deleted]
        
       | jasode wrote:
       | _> Access to customer data See customers' emails, so you can
       | communicate with them for upsells, offers and product news._
       | 
       | As a _seller_ , you understandably want that valuable buyer info.
       | 
       | But as a _customer_ , I'd deliberately avoid Paddle to keep my
       | privacy and avoid spam. If anyone thinks that Paddle's 10% fee
       | might mean the final in-app purchase price would be lower which
       | would make it worth the tradeoff to give my data, I'm not so sure
       | about that since an interpretation of the ruling still gives
       | Apple the right to get 30% via Paddle:
       | https://9to5mac.com/2021/09/14/apple-can-still-charge-its-ap...
       | 
       | If anyone thinks getting a % of someone else's payment stream is
       | unusual, consider how the "360" record label deals[1] with
       | musicians are structured. All the musician's revenue (CDs,
       | streaming, t-shirts) regardless of payment method (box office or
       | website selling tshirts) is split with the record label. Why is
       | that "unfair" situation even possible?!? _Because the musician
       | signed a contract agreeing to the revenue split._
       | 
       | [1] https://en.wikipedia.org/wiki/360_deal
        
         | jonplackett wrote:
         | > But as a customer, I'd deliberately avoid Paddle to keep my
         | privacy and avoid spam.
         | 
         | I thought the same initially - but come on, this is the
         | situation when you buy anything from anywhere else except the
         | AppStore and we all get on with it just fine. You just decide
         | if you trust the seller or not and block their emails if
         | they're annoying.
        
           | jonplackett wrote:
           | Saying that - I just received an email from Apple reminding
           | me that two of my subscriptions are coming up in a month and
           | letting me know i could cancel them before that - so there
           | are big benefits to having someone in your corner, in the
           | middle.
        
             | echelon wrote:
             | Do you hate your subscriptions that much? And love Apple
             | like your mother?
             | 
             | This is like Jeff Bezos is sending you letters asking which
             | small business you'd like to deny rent money to this month.
             | 
             | He's cackling in the background knowing you're paying him
             | and that it makes his ecosystem stronger to rope everyone
             | into it and pit them all in evolutionary battles to the
             | death.
        
               | dang wrote:
               | Would you please stop posting unsubstantive comments,
               | fulminating, and posting flamewar comments to HN? We ban
               | accounts that do this sort of thing and you do it a lot.
               | That's not cool. I don't want to ban you but we've had to
               | ask you this many times already, and at some point the
               | slack is going to run out. Please read the rules and
               | stick to them:
               | https://news.ycombinator.com/newsguidelines.html.
        
               | moate wrote:
               | No it isn't. It's like Apple asking you if you want to
               | keep paying for a service you voluntarily signed yourself
               | up for. You can set your own calendar reminders about
               | subscriptions you may not want in perpetuity, but it's
               | entirely on the small business to keep me as a customer.
               | 
               | Let's not pretend that the "poor small guys" don't
               | sometimes use subscription models with automatic renewal
               | specifically because they're hoping people will keep
               | paying them after the product is no longer useful because
               | they forget to cancel their service. This is a known dark
               | pattern I've seen complained about everywhere (including
               | here).
        
           | oauea wrote:
           | I _want_ sellers to be able to reach me when I buy from them.
           | If something goes wrong, or something happens, it is
           | absolutely essential that they are able to contact _me_.
        
             | jonplackett wrote:
             | Having had an app in the top #10 for a year or so, I can
             | say this is very important, and very difficult with the
             | current model.
             | 
             | Them contacting you isn't the issue though, you can put
             | that in the app - but if you want to contact them because
             | you messed something up, much harder.
             | 
             | Another annoyance is refunds. Sometimes you just want to
             | refund someone. Maybe because you messed up somehow, or
             | just to be nice. All you can do is send them to beg apple
             | for one which makes for crap customer service.
        
             | bathtub365 wrote:
             | That's why Apple's proxy system is a good solution. Sellers
             | can get in contact with you, but don't have your real email
             | address.
        
               | oauea wrote:
               | No, that lets the sellers contact apple who may or may
               | not choose to forward the message to me. I want the
               | sellers to contact me, since I'm doing business with
               | them. What happens when apples proxy server goes down, or
               | they start charging money for it? Very problematic for
               | everyone involved if apple can keep the contact
               | information of your customers hostage.
        
               | floatingatoll wrote:
               | It's very problematic for _businesses_ 365 days a year,
               | yes -- but for your customers, it's problematic no more
               | than 1 day a year at most. And that is a huge win for us
               | customers.
        
           | jasode wrote:
           | _> , this is the situation when you buy anything from
           | anywhere else except the AppStore and we all get on with it
           | just fine. _
           | 
           | No it isn't in my case because I don't use my Apple email
           | anywhere else but Apple. It stays clean with zero spam in the
           | inbox. Many services hide email addresses from sellers
           | including ebay, Etsy, Craigslist, Amazon, etc.
           | 
           | The key is that the _granularity and quantity_ of managing
           | email spam is reduced when all those intermediary platforms
           | shield customer email addresses. I do have my own email
           | domain and I can create throwaway email addresses which I use
           | with many other websites but that 's irrelevant if Apple
           | decided to share my email with App Store developers.
           | 
           |  _> You just decide if you trust the seller or not and block
           | their emails if they're annoying._
           | 
           | Why would I want the additional "mental tax" and decision
           | tree of trust/distrust potential seller and then do _extra
           | digital housekeeping_ of blocking future spam? I 'm still not
           | paying any less (the court ruling said Apple is still
           | entitled to 30% even with non-Apple payments) -- so what
           | exactly do I gain? It looks like Paddle offers more benefits
           | the seller but no compelling advantages to the buyer.
        
             | omnimus wrote:
             | Paddle is not two way marketplace like ebay. It's a payment
             | gateway focused on digital products. It's like Stripe and
             | it's even harder to get in to use paddle because there are
             | human checks where you have to prove what you are selling
             | is allowed.
             | 
             | What companies do with the emails is... up to them. But
             | that goes for any payment processor.
        
         | habitue wrote:
         | There's a world where I imagine apple tries to compete here,
         | and says "yes, you pay a bit more through apple, but we don't
         | give away your email address" etc, etc. Consumers could vote
         | with their wallet what they care about.
         | 
         | In practice, my bet is that Apple uses their opaque app
         | approval process and ability to change the rules at any time to
         | make it arbitrarily hard for apps that use paddle to stay in
         | the app store.
        
           | rsanek wrote:
           | I don't know if I'd characterize a price that's 10-25% more
           | expensive than the alternative as just "a bit more."
        
         | alin23 wrote:
         | I'm using Paddle for my MacOS app, Lunar (https://lunar.fyi)
         | and in my opinion they are serious enough about privacy.
         | 
         | For example when you buy a license you are by default opted-out
         | of marketing or update emails [0]
         | 
         | And the upsell feature isn't functional by default for
         | everyone, you need to contact them to discuss a "moving
         | upmarket" strategy. [1]
         | 
         | [0] https://cln.sh/llVLV2
         | 
         | [1] https://cln.sh/6lqYc1
        
           | drcongo wrote:
           | I used Paddle once, many years ago, with a unique "+"
           | address, and still get spam to that address to this day.
           | These days I don't buy software if Paddle is the only option.
           | I always thought the name Paddle was something to do with the
           | flood of spam you can expect.
        
             | alin23 wrote:
             | I'd say that's just a bad seller who would have spammed you
             | no matter what payment processor you would have gone
             | through.
             | 
             | Until now, I've used Stripe, Paypal, Paddle and some local
             | Romanian company and all of them provided me the email of
             | the customer where it was available.
             | 
             | It's up to the seller to abide by the rules, the platform
             | isn't at fault here.
        
               | [deleted]
        
               | admax88qqq wrote:
               | The payment processor could have insulated your data. But
               | with paddle it sounds like sharing your data with the
               | vendor is one of their selling points
        
               | drcongo wrote:
               | Unrelated spam from thousands of "companies".
               | 
               | > I'd say that's just a bad seller who would have spammed
               | you no matter what payment processor you would have gone
               | through.
               | 
               | Except, of course, it has NEVER happened with the
               | thousands of apps I've bought through Apple's official
               | stores. Not once.
        
               | alin23 wrote:
               | Yes, you won't see that happening when buying on Apple
               | app store because they don't share your email.
               | 
               | I was mostly talking about avoiding Paddle as a payment
               | processor, the app store isn't a payment processor so we
               | can't really compare them.
               | 
               | I'd still say the spam came from a seller sharing your
               | address, or leaking it by mistake, not from how Paddle
               | works.
               | 
               | If your issue would be Paddle related and recurrent, I
               | don't think they would still be in the business as trust
               | is very important when handling money and customer data
               | and soon no one would choose them anymore.
        
               | enos_feedler wrote:
               | The fundamental issue here is that developers, at scale,
               | cannot be trusted. You can trust specific ones to do the
               | right thing but you can't trust them all. Apple sees
               | themselves as responsible for protecting all of their
               | customers from this reality. Others call them
               | "gatekeepers". The example here is sharing an email
               | address with developers. There are other examples like
               | "no background processes". Developers hate this becuase
               | they see _themselves_ as trustworthy but the reality
               | still stands: developers at scale cannot be trusted to do
               | the right thing.
               | 
               | Now let me add my opinion on this: Should we have a
               | platform that allows consumers to make a single choice
               | ie) choose Apple, and by proxy never needs to trust
               | developers at scale? Absolutely. Many people, especially
               | developers, would rather trade some developer flexibility
               | (multiple payment processors) and push some
               | responsibility onto Apple's users to continue making an
               | opt-in choice for Apple. I choose them for my phone. I
               | just them again for in-app purchases. Continue making
               | choices in support of Apple for each layer of the system.
               | I am not really sure what this buys the consumer. What is
               | Apple blocking from you by forcing you to make that
               | choice once, and then being forced to "never trust
               | developers at scale" for the remainder of being an iPhone
               | customer. Is it blocking "innovation"? Some people think
               | that. I don't see it. I see a company that pushes the
               | hardware envelope with sensors, battery, operating
               | system, etc, and works hard to give developers access to
               | THOSE things. Maybe not a users email address, but is
               | that really innovation anyway? I looked at this Paddle
               | payment processor and they have some things like "pause
               | subscription". Is pause really an innovation that is
               | being blocked by only using Apple's system? Google has
               | supported pause for a long time. Users want it, but to
               | developers really want users pausing their subs? probably
               | not.
        
               | Terretta wrote:
               | > _Should we have a platform that allows consumers to
               | make a single choice ie) choose Apple, and by proxy never
               | needs to trust developers at scale? Absolutely._
               | 
               | I view any attempt at using regulation to prevent or
               | block or eliminate this valid choice as the actually
               | anti-competitive play.
        
               | enos_feedler wrote:
               | 110%. Glad to see someone out there also finds this super
               | ironic
        
               | spaceywilly wrote:
               | That's the thing though, I use apple IAP in my app and I
               | don't have any clue what the user's email is. They keep
               | it secret. It's to the point where I actually advertise
               | that as a benefit of my app, and people mention it in
               | reviews as a reason they chose my app over others. People
               | are tired of their information being sold up the river.
        
               | nemothekid wrote:
               | > _I'd say that's just a bad seller who would have
               | spammed you no matter what payment processor you would
               | have gone through_
               | 
               | Except for Apple who would not have shared my address.
               | Bad sellers on the platform is the _platforms_ problem.
        
               | smoldesu wrote:
               | > Except for Apple who would not have shared my address.
               | 
               | Can you prove this?
        
               | nemothekid wrote:
               | > _Can you prove this?_
               | 
               | If you implement IAP with Apple's billing system, Apple
               | doesn't share your credentials with the seller. There's
               | nothing to prove, you can implement it yourself if you
               | like.
        
               | smoldesu wrote:
               | How does that prove that they aren't retaining or sharing
               | that info with others?
        
               | tomjen3 wrote:
               | As a user I would say the platform is at fault, because
               | the seller shouldn't be trusted with the information.
        
         | MomoXenosaga wrote:
         | Spam? Who cares outlook will learn to ditch that in a few
         | weeks.
         | 
         | Apple is just another parasite middle man and the defenders are
         | sounding like brainwashed fan boys.
        
           | threeseed wrote:
           | After I supported an Indiegogo/Kickstarter campaign somehow
           | my email has been sold on to other campaigns. I now get
           | hundreds of emails a year promoting other campaigns. None of
           | which Outlook can block since it's from unique companies and
           | all of which I have to manually unsubscribe from.
           | 
           | That kind of spam is insidious and it's just the tip of the
           | iceberg for what companies do with your data.
        
             | oauea wrote:
             | That is already illegal. Report the companies. Apple has
             | absolutely nothing to do with this.
        
               | bathtub365 wrote:
               | You can engage in transactions using their proxy service
               | so the company the company doesn't get your real email
               | address. "Report the companies" to who? Where? I'd rather
               | not be in that situation in the first place, it's a huge
               | waste of my time.
        
               | oauea wrote:
               | So you'd really rather hide behind Apple's goodwill
               | instead of simply having the government regulate things,
               | as they're already doing? Simply contact the relevant
               | watchdog in your country.
        
               | bathtub365 wrote:
               | Why would I let someone continuously dump garbage into my
               | life while I wait for a government regulator to respond
               | to my complaint? I would rather not have the problem in
               | the first place.
        
         | pimterry wrote:
         | > Access to customer data See customers' emails, so you can
         | communicate with them for upsells, offers and product news.
         | 
         | It looks like they've updated the text since this comment. That
         | bullet point now says:
         | 
         | > Access to customer email _for support_
         | 
         | > See customers' emails, so you can communicate with them _for
         | billing support_.
         | 
         | Harvesting emails from purchases for pure marketing is GDPR-
         | dubious at best, and Paddle's main market is the EU (because it
         | handles EU VAT in a way that Stripe cannot), so I suspect
         | they're backing away from any implication that you could ever
         | actually send marketing to IAP customers legally.
        
           | 2muchcoffeeman wrote:
           | The subscription section also seems wrong. Apple has
           | subscription support. I can start and end my subscriptions at
           | any time.
        
         | 6gvONxR4sf7o wrote:
         | > ...deliberately avoid Paddle to keep my privacy...
         | 
         | Can apple still dictate things about the payment systems, even
         | if they can't force you to use theirs? As a consumer, I sure
         | hope apple forces some kind of privacy standards compliance.
        
           | ascagnel_ wrote:
           | > Can apple still dictate things about the payment systems,
           | even if they can't force you to use theirs?
           | 
           | I read through the decision when it first came down, and
           | while Apple was blocked from restricting third-party payment
           | systems, there was no language preventing Apple from
           | mandating their own payment system alongside third-party
           | options.
           | 
           | I wouldn't be surprised if Apple dropped their 30% cut for
           | their own system, but kept a 30% commission for third-party
           | systems.
        
             | gondo wrote:
             | How would Apple know the volume charged via 3rd party
             | systems?
        
         | dkonofalski wrote:
         | Additionally, Paddle is completely ignoring that Apple's 30%
         | doesn't _only_ include payments. It includes everything
         | required to make those in-app purchases function - hosting,
         | downloads, updates, management, reviews, localization, etc. All
         | this would mean is that Apple will get to collect that money
         | from 2 sources instead of one which complicates the situation
         | for both developers _and_ for customers.
         | 
         | Until a judge rules that Apple doesn't have control over its
         | own App Store (which the Epic ruling explicitly reaffirmed that
         | it does), this is only going to get silly and bloated.
        
           | sneak wrote:
           | The hosting, downloads, updates, reviews are all covered
           | already by the $99/yr developer fee, because this is what is
           | charged for that to free apps without IAPs.
           | 
           | Apple is just using their anticompetitive stance to charge
           | 10x more than the standard industry rate for payment card
           | processing.
        
             | dkonofalski wrote:
             | No it's not... In-app purchases _also_ require hosting,
             | download, and update services. The apps themselves do but
             | the purchases do also. The $99 /yr only covers the license
             | to develop an app.
        
         | bilekas wrote:
         | I'm also not comfortable about the sharing of my email AND
         | other data. I like using REvolut/Apple pay for this very
         | reasons.
         | 
         | Also I don't understand why this is some new kind of company,
         | isn't this just another payment gateway like any other ?
         | 
         | Seems they've just branded off the back of the Epic // Apple
         | ruling ?
        
           | chipgap98 wrote:
           | > Also I don't understand why this is some new kind of
           | company, isn't this just another payment gateway like any
           | other ?
           | 
           | Paddle is an established company, they've just added a new
           | mobile checkout feature.
        
             | bilekas wrote:
             | Okay fair enough, so it still doesn't seem that newsworthy
             | imo as they will all be doing the same if not already
        
         | NamTaf wrote:
         | Precisely. I saw that and was instantly glad Apple is a
         | middleman for that particular point. For all their criticisms,
         | they seem to be one of the companies that _gets_ that.
         | 
         | If it's a service I use enough to possibly consider an upsell
         | opportunity, I'll be aware of that opportunity through
         | organically discovering it during my use of the service or
         | through broader community discussion regarding the service. In
         | all other cases, I don't want unsolicited contact.
        
         | cblconfederate wrote:
         | Paddle et al. can implement an email forwarder so the emails go
         | to user3492@proxy.paddle.com if privacy is truly a concern.
         | Plus paddle has arguably much less info on yourself to be
         | worried. I don't think the situation with record labels is even
         | remotely comparable -- apple & google do very little to help
         | devs.
        
         | polote wrote:
         | > But as a customer, I'd deliberately avoid Paddle to keep my
         | privacy and avoid spam
         | 
         | You make it seems like, this is an issue. But every service
         | that you use today has your email, Amazon, your ISP, Apple, ..
         | everyone.
         | 
         | If you don't want to receive email, use a secondary email to
         | subscribe to services and you will not be annoyed with
         | unsolicited emails
        
           | meepmorp wrote:
           | Yeah, or we could just keep things exactly the way they are
           | and not fuck with it because it's actually better for me as a
           | consumer.
        
             | lolpython wrote:
             | Paying 30 percent extra is not unilaterally better for the
             | consumer.
        
               | dkonofalski wrote:
               | It is if I get all the benefits of paying what that 30%
               | covers.
        
           | nolok wrote:
           | Nope, to take a current exemple which many people loathe for
           | one reason or another, even EPIC Games Store does not
           | transfer your email to the seller by default, and the
           | checkbox do to do so in checkout is left unchecked by
           | default.
        
       | [deleted]
        
       | Razengan wrote:
       | > _" In addition to lower fees, Paddle said benefits of its
       | payment system will include access to customer data"_
       | 
       | Blood is in the water, and the sharks are howling.
        
       | HatchedLake721 wrote:
       | I'm kinda baffled by Paddle.
       | 
       | Is this a PR stunt?
       | 
       | Judge explicitly said Apple is allowed to collect their 30%
       | commission even if customer uses a different payment provider.
        
       | [deleted]
        
       | chrowe wrote:
       | Christian, founder of Paddle here. There are a few things I'd
       | like to try and clear up possible misunderstandings around.
       | 
       | Paddle has been a long-term supporter of Mac apps for many years
       | (including CleanMyMac, Framer, Tower and more) and we're excited
       | about the prospect of supporting iOS apps as well - something
       | we've not been able to do so far.
       | 
       | We're heavily invested in keeping customer data safe and secure.
       | We think app developers should be able to support and interact
       | with their customers directly rather than having to go through
       | Apple or another 3rd party to resolve any issues. Our solution
       | will give app creators that opportunity - one that's already the
       | case for sales made on vendor websites.
       | 
       | Any kind of marketing comms will require customers to have opted
       | in through a checkbox in the checkout process. We're just looking
       | to give developers the ability to ask, like is commonly done
       | during browser-based purchases.
       | 
       | I'm super keen to keep an open dialogue with any developers
       | interested in an alternative to how you currently sell your apps
       | in iOS so don't hesitate to reach out to me christian at paddle
       | com
        
       | mafriese wrote:
       | Honestly as a user I will avoid any app that is trying to offer
       | me a purchase outside the App Store. Users mostly don't care
       | about the issues between the developers and Apple and at least I
       | am willing to pay more for my IAPs and be able to use Apple as my
       | payment processor (sure - I can pay with Apple Pay but switching
       | to another app for paying is a step more than needed).
        
         | mchusma wrote:
         | I don't think anyone is objecting to Apple being allowed to
         | offer a solution. Most simply want there to be other options
         | available to customers.
        
           | malshe wrote:
           | The majority of customers don't want the choice.
        
         | Aeolun wrote:
         | Isn't everyone here a developer? Aren't you frustrated Apple
         | can essentially take 30% of your revenue just for the privilege
         | of strengthening their monopoly?
        
           | prepend wrote:
           | I'm a user more than I'm a developer. And there's lots more
           | users than developers.
           | 
           | I'm going to pay 3-5% for payment processing no matter how I
           | look at it. So paying apple 15% to handle that is acceptable
           | to me.
           | 
           | It's one of those things that should be cheaper and is too
           | much, but better than the alternative.
           | 
           | The payment part is the worst part of the purchase experience
           | for me. I play a game that has a Mac version through Epic and
           | an iOS version. Buying on iOS is easy, one click. Buying on
           | Mac is a pain with some modal web frame pop up to a payment
           | processor where I have to enter my payment info every time.
           | EVERY TIME! I've already logged in. They know me.
           | 
           | Of course the price to me is the same in both situations.
           | 
           | So alternate payment processors will just be shittier for
           | users. Bad UX, riskier data, and the same price.
        
             | tinus_hn wrote:
             | It isn't even 30% because you can top up your balance using
             | discounted iTunes cards.
        
           | mafriese wrote:
           | Well... That's the same amount of money you have to give to
           | Google, Microsoft and Amazon if you want to use their
           | services. Google and Apple both take 15% if you make less
           | than 1.000.000$/year. Again - As a user I also don't have a
           | problem with the AppStore monopoly because 1. When I bought
           | the device I knew that I can only use the apps that are
           | available on the AppStore 2. Every time I open the Microsoft
           | Store I'm thankful that the guidelines on iOS are so strict
           | 3. Freedom to install everything you ""want"" has at least
           | the same amount of bad use cases than good ones (usually it's
           | mostly used for modding or piracy).
        
           | madhatte wrote:
           | When it comes to Apple privacy trumps ownership/monopoly. Its
           | like a benevolent dictator. It can do no bad, if something is
           | bad, then actually its good!.
        
           | Razengan wrote:
           | Unless you only ever use your own apps and nothing else, some
           | of us are also "users" (in the general consumer sense).
           | 
           | Unless you jumped straight from school into a company with
           | the goal to make mad money and nothing else, some of us
           | became developers precisely because computer technology
           | shaped our lives and became our passion.
           | 
           | We want to give our users the best experience possible, and
           | don't really care about their email addresses and credit card
           | numbers and shit. And Apple's IAP is closest to the ideal
           | system:
           | 
           | * Minimal clicks and no jarring exits out of the app into
           | third-party websites
           | 
           | * No need to re-enter payment and personal info at multiple
           | places
           | 
           | * Biometric verification
           | 
           | * Preserves privacy and protects financial info
           | 
           | * Shows all receipts and subscriptions in one place
           | 
           | Even if Apple took a 50% I would _still_ want the users of my
           | app to have access to those benefits, because that's what I
           | would like all other devs to give _me_ in _their_ apps.
        
           | moneywoes wrote:
           | Effectively 15% for most developers
        
       | giarc wrote:
       | The feature list says that Apple doesn't allow "Define your own
       | pricing", "Local pricing control", "Subscription pausing",
       | "Ability to refund". I don't manage any apps with IAP (or any
       | apps for that matter) but I feel like these are all possible with
       | Apple.
        
       | cblconfederate wrote:
       | One of many. Hope more will come, this space was abandoned after
       | facebook platform faded and there are very few competitors.
        
       | ricardobeat wrote:
       | > Access to customer data
       | 
       | And here goes one of the reasons Apple wanted control in the
       | first place.
       | 
       | This is _not_ a customer friendly change.
        
       | leodriesch wrote:
       | Allowing 3rd party payments in apps is a net negative for
       | consumers IMO. The current way of paying for in-app content is
       | extraordinarily easy and privacy-preserving. Subscriptions are
       | listed in one spot and can easily be cancelled from there.
       | 
       | Sure the fee is a bummer, but that's not my problem as a
       | consumer. If it makes the subscription more expensive I'll just
       | buy it on their website.
       | 
       | But I feel this change will produce all sorts of awful web-hybrid
       | user experiences.
        
         | dymk wrote:
         | The fee is your problem though. You're paying a 20% premium
         | (Apple 30% minus Paddle 10%), because those fees are being
         | passed directly on to you.
        
           | fingerlocks wrote:
           | Did you miss the very next sentence?
           | 
           |  _If it makes the subscription more expensive I'll just buy
           | it on their website._
        
           | malshe wrote:
           | The vast majority of developers are probably paying 15% to
           | Apple and not 30%.
        
         | northerdome wrote:
         | I thought this until I tried an app with IAP and wanted a
         | refund when it didn't work for me. The developer told me they
         | had no way to issue one on their side since I went through IAP.
         | Apple support gave me the runaround before eventually saying
         | they don't do refunds, even when I showed emails from the
         | developer saying they supported refunding me. Apple is not pro-
         | consumer.
         | 
         | IAP is convenient, but I don't think Apple is truly motivated
         | by the customer as much as they are charging a tax.
        
           | Klonoar wrote:
           | So fix refunds instead of making a worse UX.
        
       | arvindrajnaidu wrote:
       | Why not just use PayPal Checkout SDK?
        
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